High demand, stock shortage in leafy Newlands

The Cape Town suburb of Newlands is seeing sustained high demand from family buyers wanting access to top schools and an easy commute to the Central City. The result is that properties are changing hands quite rapidly, with well-priced homes selling within days of their listing, often at full asking price. Pam Golding Properties (PGP) reports that nearly 30 homes have changed hands in the suburb in the past four months alone (March to June 2014), at an average price of R5.821 million. The average time from listing to sale has been under a month. (source – Propstats, sales by all agencies March to June 2014)

PGP agents Heather Turner and Vickie Francis note that many of their buyers are existing residents of the Southern Suburbs who are upgrading as their financial prospects improve and families grow. “We have also seen several buyers from the Eastern Cape and Gauteng during this period,” they say, “some of them relocating to Cape Town, and others buying for investment purposes. High demand coupled with stock shortages is resulting in price growth, and we have seen a number of properties changing hands at R6 million or more, particularly in the sought-after Hiddingh and Fernwood sections of Newlands, as well as the popular Newlands Village. Really top-end luxury properties with high quality finishes and mountain views can even fetch upwards of R10 million.”

The highest demand at present is for homes priced around R4.5 million, for which buyers expect to acquire a three- or four-bedroomed home with a garden, pool and double garage. PGP recently sold just such a home in Paradise Road for its full asking price of R4.8 million, within just two days of listing the property.

Turner and Francis note that security is another key consideration for buyers, as is the potential for long-term capital growth – many buyers are happy to purchase older homes and commit to extensive renovations to add value to the properties. “The active, friendly community spirit is another appealing factor,” they add, “with residents who know their neighbours and participate in community projects such as the upkeep of the four local parks, which are beautifully maintained and well used. There are also several active email groups which keep residents informed of activities in the area, any security concerns and new developments in their section of Newlands.”

Residents of the suburb not only enjoy leafy streets, well-sized homes and gardens and in some cases, mountain views, but also have access to the river running through the suburb, ideal for dog-walking and trail-running. Newlands also offers a cosmopolitan café culture which includes numerous coffee shops, restaurants and boutique stores, right in the heart of the suburb. The BP garage in Newlands Avenue with its Pick n Pay convenience store is currently undergoing a total revamp, while the popular Foresters Arms and Barristers pubs have also been extensively updated over the past year.

While stock is limited due to the ongoing high demand, PGP nevertheless has a variety of homes currently on the market in Newlands, from compact homes in Newlands Village and well-priced older homes in need of renovation, to more modern top-end properties and even a magnificent historic home dating back to 1883. To view these properties, or for more information, call PGP agents Heather Turner (082 445 0041) and Vickie Francis (072 615 0332), or contact the Newlands office on 021 685 7759 or newlands@pamgolding.co.za.